Taiwan Sets Levies Against Micron DRAM Sales of 62%

Computergram International, Sept 20, 1999

Taiwan's Ministry of Finance has approved a four-month 62% antidumping duty against memory chip maker Micron Technology Inc. If approved by Taiwan's Cabinet, the levy could be put into effect as soon as October. It is the first time that Taiwan has imposed a penalty on a US firm. The move results from complaints earlier this year by the Taiwan Semiconductor Industry Association, which accused Micron of selling DRAM chips into Taiwan at almost half the price of the same chips in the US. A review to consider an extension of the levy is expected to be carried out in February 2000.

Despite the ruling, Micron is unlikely to be seriously affected as it sells very few products into the Taiwanese market. US commentators branded the decision a political one. Back in May, the US Commerce Department accused Taiwanese makers of selling DRAM chips into the US at below market prices. Import duties averaging 17% were suggested, and fines may be levied from October or November, depending on the results of further investigation. The US International Trade Commission came to similar conclusions at the end of last year, and a number of chip makers had tariffs imposed on them by the US Government last year following complaints by Micron.